OKRs vs KPIs: Understanding the Difference

Introduction

Objectives and Key Results (OKRs) and Key Performance Indicators (KPIs) are both important measurement tools, but they serve different purposes. This article explains their differences and how to use them effectively.

What are OKRs?

• Qualitative objectives
• Measurable key results
• Time-bound goals
• Ambitious targets

What are KPIs?

• Quantitative metrics
• Performance indicators
• Ongoing measurements
• Business health indicators

Key Differences

• Purpose and focus
• Time horizon
• Measurement approach
• Implementation scope

Best Practices

• Align OKRs with strategy
• Choose relevant KPIs
• Regular review and adjustment
• Clear communication

Conclusion

Both OKRs and KPIs are valuable tools when used appropriately for their intended purposes.